Copa-Cogeca: The united voice of farmers and their cooperatives in the European Union Daniel Azevedo - Policy Adviser Bilateral Trade Agreements Hearing on the Role of Civil Society in the EU-Japan FTA: European Stakeholders’ Perspectives Brussels, 3 rd December 2013 FTA EU – Japan The perspective of EU Farmers and Cooperatives

Index Who are Copa and Cogeca? Copa-Cogeca’s position on Trade Agricultural trade relations with Japan Divergence and Convergence Key Messages Copa-Cogeca | The voice of European farmers and their cooperatives | 2

Copa-Cogeca | The voice of European farmers and their cooperatives | 3 Who are Copa and Cogeca? Two organisations… Copa - representing 25 million farmers and their families (57 EU farmers’ organisations) Cogeca - around 38,000 cooperatives (31 EU agricultural cooperatives organisations) Copa-Cogeca have altogether 70 Member and 34 Partner Organisations 38 of the members are from the new Member States

Copa-Cogeca | The voice of European farmers and their cooperatives | 4 How is Copa-Cogeca organised? Working Parties POCC/CCC Copa Praesidium Cogeca Praesidium Joint Copa and Cogeca Secretariat European Commission, Council of Ministers, European Parliament, Permanent Representations, Media…

Copa-Cogeca | The voice of European farmers and their cooperatives | 5 How is Copa-Cogeca organised? The Working Parties 45 Working Parties, dealing with market and policy developments Prepare joint Copa and Cogeca positions Topics:commodities, cooperative affairs, rural development, biotechnology, environment, animal health & welfare …

Copa-Cogeca | The voice of European farmers and their cooperatives | 6 How is Copa-Cogeca organised? The Praesidium Composed of the Presidents of the Member Organisations (70) Copa and Cogeca each have a Praesidium, Presidency and a President: Christian Pèes (FR) Current Cogeca President Albert Jan Maat (NL) Current Copa President

Copa-Cogeca's position on Trade Priority - Multilateral negotiations at the WTO We strongly support a deep and comprehensive free trade agreement (FTA) between the EU and Japan. Public Consultation on the future of EU Japan trade and economic relations (2010) and Joint Statement (July 2012 and November 2013). Common views on the role of agriculture in society. We jointly set up the World Farmers’ Organisation and we often adopt the same approach for WTO negotiations. We are looking to closely cooperate to strengthen issues that are of common interest: traceability, GIs, animal welfare, sanitary and phytosanitary issues. Copa-Cogeca | The voice of European farmers and their cooperatives | 7

Agricultural trade relations with Japan EU has a positive trade balance with Japan and has improved recently - €2.17 billion in Copa-Cogeca | The voice of European farmers and their cooperatives | 8 Japan as a small supplier - EU imported €12 million in 2011 in comparison with €52.6 billion of all imports from third Countries EU Exports towards Japan - amounting to €2.2 billion, i.e. 4.9% of total EU-27 agricultural exports EU - offensive in the agricultural chapter Looking for the same market access as our main competitors

Agricultural trade relations with Japan Copa-Cogeca | The voice of European farmers and their cooperatives | 9 Preparations of fruits and vegetables are the most important Japanese products entering the EU market, followed by protein crops. Top imports (left) from and exports (right) to Japan in 2011 – in million euro Own elaborations on Eurostat-ComExt data EU exports to Japan: -pigmeat for €777 million (Japan is the second biggest buyer of European pigmeat after Russia), -wine for €607 million -cheese for €221 million. -Mostly products that are not in competition with the local production

The agriculture in Japan Rice - Japan is highly self-sufficient for rice and rice production. Livestock - Production of livestock products, has grown strongly (beef and pig) Fruits and vegetables - These products are produced by business-oriented farms. Exports of these products have increased by 60% in recent years, and this growth is expected to continue. Copa-Cogeca | The voice of European farmers and their cooperatives | 10 Farm size,

EU-Japan convergence/divergence on agri-food Japan is a developed economy, its market has strong purchasing power Net importer of certain agricultural goods – agri-food more important than raw materials Japan lifted the ban on imports of beef and beef products from France and the Netherlands (February 2013). We expect that Japan will extend this measure to the remaining EU countries (Ireland?). Same approach on high standards - Food safety, ex. traceability, GMOs EU - potential to export added value and processed food products. Japan - producing high-quality and specialised products for domestic and foreign markets (Ex: ‘Kobe beef’). Copa-Cogeca | The voice of European farmers and their cooperatives | 11

Demand for meat and dairy products has increased strongly -affordability and westernisation of the Japanese diet; -consumption growth of between 400% and 700% in the last 40 years, -new market for Veal The share of farm households in rural communities has fallen from 46% in the ‘70s to 11% in Agricultural policy in Japan: - the maintenance of comparable income levels between agricultural producers and other actors in the economy, - maintenance of a secure food supply, - preservation of the benefits that agriculture brings to landscapes and social benefits, including especially for rural economies. Copa-Cogeca | The voice of European farmers and their cooperatives | 12

Non-tariff measures Unanswered issues regarding SPS measures (sanitary and phytosanitary): - Japan does not recognise the EU as a single market - Japan has not implemented the provisions of the WTO’s SPS agreement on regionalisation with respect to the EU EU exports of processed agricultural products to Japan by up to 200% if both tariffs and non-tariff measures were abolished. (European Commission’s Impact Assessment Report on EU-Japan Trade Relations (2012)). Trade barriers typically raise costs by about 13% for EU operators trying to penetrate the Japanese market. Copa-Cogeca | The voice of European farmers and their cooperatives | 13

Tariffs Tariffs remain high on agricultural products. Japan's trade- weighted average tariff on European food and drink exports is 34.7%, with several tariff peaks above 500%, while the EU's trade-weighted average tariff is 12.4%. Japan applies high tariffs to some EU agricultural products (ex: 38,5% on beef and 30 % cheese). Pigmeat – same market access as our competitors. Dairy – Who is going to supply this region (Asean)? EU only has offensive interests in certain sectors, such as pigmeat, cheese, wine and some cereals other than wheat. Copa-Cogeca | The voice of European farmers and their cooperatives | 14

Wine Japan’s wine market - mature established -per-capita consumption: 2.3 litres per inhabitant in nd largest EU agricultural export (€604 million) Japanese wine market accounts for 2.9 million hl (similar to Switzerland), which is just above 1% of global wine consumption. Average price of a litre of EU wine imported by Japan is higher than the average EU wine export price: €4.51/litre compared to €3.67/litre (2012). Copa-Cogeca | The voice of European farmers and their cooperatives | 15

Full tariff removal could boost EU meat exports by 13 Pigmeat : In 2011 Japan imported €777 million of pigmeat from the EU. - Currently, Japanese pork imports are subject to a differential duty mechanism known as the “minimum import price system” also referred to as the “gate price”. Copa-Cogeca | The voice of European farmers and their cooperatives | 16 Livestock

Olive Oil -Olive oil consumed in Japan is imported. -Olive oil consumption has increased from 4,000 t in the early 1990s to 40,000 t in 2011, and are growing Dairy: -In 2011, exports of cheese and milk & milk products to Japan total 221 and 29 € million respectively. Fruit and vegetables -In 2008 this sector represented 3% of total exports from the EU to Japan. -This amount could increase if Japan’s approval procedures to import new varieties of fresh fruit and vegetables were shorter and more transparent. Hop sector (not sensitive for Japan) - In 2011, EU exported around 34 € million (Germany, Czech Republic, Slovenia) Copa-Cogeca | The voice of European farmers and their cooperatives | 17 Olive oil, Dairy, Hop, Fruits and Vegetables

Japan is the tenth largest rice producer in the world (production at around 10 million t). Japan is highly self-sufficient for rice -Quantities traded between the EU and Japan are very small and it can be expected that this situation will not change even if Japan or the EU lift their tariffs on rice EU imports 120 t on average from Japan. EU exports 116 t on average to Japan. Copa-Cogeca | The voice of European farmers and their cooperatives | 18 Rice

Key Messages Copa-Cogeca | The voice of European farmers and their cooperatives | 19 Both the EU and Japan are highly developed economies and major global traders and investors. An EU-Japan agreement would greatly contribute to guaranteeing that EU farmers will not be at a disadvantage compared to their counterparts in the TPP agreement. Common views on the role of agriculture in society. Cooperation to improve SPS chapter in WTO Market opportunities: It would greatly benefit the EU pigmeat, dairy, wine and olive sectors and offer EU exporters enormous opportunities. Promotion programme for EU agricultural products

Copa-Cogeca | The voice of European farmers and their cooperatives | 20 Copa-Cogeca: Defending and developing the European Model of Agriculture